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PACIFIC GAS AND ELECTRIC COMPANY

ELECTRIC PROGRAM INVESTMENT CHARGE (EPIC) 2019 ANNUAL REPORT

FEBRUARY 28, 2020

ATTACHMENT A: 2019 EPIC Annual Report

ATTACHMENT B:

2019 EPIC Annual Report Appendix A

ATTACHMENT C: 2019 EPIC Annual Report Appendix B

PACIFIC GAS AND ELECTRIC COMPANY

ATTACHMENT A

2019 EPIC ANNUAL REPORT

Pursuant to Decision (D.) 12-05-037 – Phase 2 Decision Establishing Purposes and Governance for Electric Program Investment Charge (EPIC) and Establishing Funding Collections for 2013-2020, Pacific Gas and Electric Company (PG&E) hereby files the 2018 Annual Report for the EPIC Program.

In compliance with Ordering Paragraph (OP) 16, a copy will also be served on all parties in the most recent EPIC proceedings; the most recent General Rate Cases (GRC) of PG&E, Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E); and each successful and unsuccessful applicant for an EPIC funding award during the previous calendar year.

Service Lists:

EPIC 2012-2014: Application (A.) 12-11-001, A.12-11-002, A.12-11-003, and A.12-11-004.

EPIC 2015-2017: A.14-05-003, A.14-05-004, A.14-05-005, and A.14-04-034.

EPIC 2018-2020: A.17-04-028, A.17-05-003, A.17-05-005, and A.17-05-009.

EPIC Research Administration Plan: A.19-04-026 EPIC Program Renewal OIR: R.19-10-005

PG&E recently filed GRC: A.18-12-009.

SCE recently filed GRC: A.19-08-013.

SDG&E RECENTLY filed GRC: A.17-10-007.

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PACIFIC GAS AND ELECTRIC COMPANY ELECTRIC PROGRAM INVESTMENT CHARGE (EPIC)

2019 ANNUAL REPORT

TABLE OF CONTENTS

1. Executive Summary ................................................................................................ 1

A. Overview of Program and Plan Highlights ........................................................ 1

2. Introduction and Overview .................................................................................... 12

A. Background on EPIC ...................................................................................... 12

B. EPIC Program Components ........................................................................... 13

C. EPIC Program Regulatory Process ................................................................ 14

D. Coordination ................................................................................................... 14

E. Transparent and Public Process .................................................................... 15

3. Budget .................................................................................................................. 16

A. Authorized Budget .......................................................................................... 16

B. Commitments/Encumbrances ........................................................................ 16

C. Dollars Spent on In-House Activities .............................................................. 17

D. Fund Shifting Above 5 Percent between Program Areas ............................... 17

E. Uncommitted/Unencumbered Funds .............................................................. 17

F. Directly Awarded Funds ................................................................................. 18

G. Match Funding ............................................................................................... 19

4. Projects ................................................................................................................. 19

A. Summary of Project Funding .......................................................................... 19

B. Project Status Report (See Appendix A) ........................................................ 19

C. Project Descriptions and Updates .................................................................. 19

Project #1.01 – Energy Storage End Uses ..................................................... 20

Project #1.02 – Demonstrate the Use of Distributed Energy Storage for Transmission and Distribution (T&D) Cost Reduction .............................. 22

Project #1.03 – Demonstrate Priority Scenarios from the Energy Storage Framework ................................................................................. 24


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TABLE OF CONTENTS (CONTINUED)

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Project #1.04 – Expand Test Lab and Pilot Facilities for New Energy Storage Systems ..................................................................................... 26

Project #1.05 – Demonstrate New Resource Forecast Methods to Better Predict Variable Resource Output ................................................. 28

Project #1.06 – Demonstrate Communication Systems Allowing the CAISO to Utilize Available Renewable Generation Flexibility .................. 30

Project not executed. ...................................................................................... 30

Project #1.07 – Demonstrate Systems to Ramp Existing Gas-Fired Generation More Quickly to Adapt to Changes in Variable Energy Resources Output .................................................................................... 31

Project #1.08 – Improve Distribution System Safety and Reliability Through New Data Analytics Techniques ................................................ 33

Project #1.09A – Test New Remote Monitoring and Control Systems for Existing Transmission and Distribution Assets: Close Proximity Switching .................................................................................. 35

Project #1.09B and 1.10B – Test New Remote Monitoring and Control Systems for T&D Assets/Demonstrate New Strategies and Technologies to Improve the Efficacy of Existing Maintenance and Replacement Programs ........................................................................... 37

Project #1.09C – Test New Remote Monitoring and Control Systems for T&D Assets: Discrete Series Reactors ................................................... 39

Project #1.10A – Demonstrate Automated Asset Notification and Management Systems: Dissolved Gas Analysis ..................................... 41

Project #1.10C – Demonstrate Automated Asset Notification and Management Systems: Underground Cable Analysis ............................. 42

Project #1.11 – Demonstrate Self-Correcting Tools to Improve System Records and Operations .......................................................................... 43

Project #1.12 – Demonstrate New Technologies That Improve Wildlife Safety and Protect Assets From Weather-Related Degradation .............. 45

Project #1.13 – Demonstrate New Communication Systems to Improve Substation Automation and Interoperability ............................................. 46


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Project #1.14 – Demonstrate “Next Generation” SmartMeter™ Telecom Network Functionalities ............................................................................ 48

Project #1.15 – Demonstrate New Technologies and Strategies That Support Integrated “Customer-to-Market-to-Grid” Operations of the Future ...................................................................................................... 50

Project #1.16 – Demonstrate Electric Vehicle as a Resource to Improve Grid Power Quality and Reduce Customer Outages ............................... 52

Project #1.17 – Leverage EPIC Funds by Participating in Multi-Utility, Industry Wide RD&D Programs Such as EPRI ........................................ 54

Project #1.18 – Demonstrate SmartMeter-Enabled Data Analytics to Provide Customers With Appliance-Level Energy Use Information ......... 56

Project #1.19 – Pilot Enhanced Data Techniques and Capabilities via the SmartMeter Platform .......................................................................... 58

Project #1.20 – Demonstrate the Benefits of Providing the Competitive, Open Market With Automated Access to Customer-Authorized SmartMeter Data to Drive Innovation. ...................................................... 60

Project #1.21 – Pilot Methods for Automatic Identification of Distributed Energy Resources (Such as Solar PV) as They Interconnect to the Grid to Improve Safety & Reliability ......................................................... 62

Project #1.22 – Demonstrate Subtractive Billing With Submetering for EVs to Increase Customer Billing Flexibility ............................................. 64

Project #1.23 – Demonstrate Additive Billing With Submetering for PVs to Increase Customer Billing Flexibility .................................................... 66

Project #1.24 – Demonstrate DSM for T&D Cost Reduction .......................... 68

Project #1.25 – Develop a Tool to Map the Preferred Locations for DC Fast Charging, Based on Traffic Patterns and PG&E's Distribution System, to Address EV Drivers' Needs, While Reducing the Impact on PG&E's Distribution Grid ..................................................................... 70

Project #1.26 – Pilot Measurement and Telemetry Strategies and Technologies That Enable the Cost-Effective Integration of Mass Market Demand Response (DR) Resources Into the CAISO Wholesale Market .................................................................................... 72


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Project #2.01 – Evaluate Storage on the Distribution Grid ............................. 74

Project #2.02 – Pilot Distributed Energy Resource Management Systems (DERMS) ................................................................................... 75

Project #2.03A – Test Smart Inverter (SI) Enhanced Capabilities –PV .......... 78

Project #2.03B – Test Smart Inverter Enhanced Capabilities – Vehicle to Home ................................................................................................... 81

Project #2.04 – DG Monitoring & Voltage Tracking ........................................ 83

Project #2.05 – Inertia Response Emulation for DG Impact Improvement ............................................................................................ 85

Project #2.06 – Intelligent Universal Transformer (IUT) ................................. 87

Project #2.07 – Real-Time Loading Data for Distribution Operations and Planning ................................................................................................... 89

Project #2.08 – “Smart” Monitoring and Analysis Tools .................................. 91

Project #2.09 – Distributed Series Impedance (DSI) Phase 2 ........................ 92

Project #2.10 – Emergency Preparedness Modeling ..................................... 93

Project #2.11 – New Mobile Technology & Visualization Applications ........... 95

Project #2.12 – New Emergency Management Mobile Applications .............. 96

Project #2.13 – Digital Substation/Substation Automation ............................. 97

Project #2.14 – Automatically Map Phasing Information ................................ 98

Project #2.15 – Synchrophasor Applications for Generator Dynamic Model Validation .................................................................................... 100

Project #2.16 – Enhanced Synchrophasor Analytics & Applications ............ 102

Project #2.17 – Geomagnetic Disturbance (GMD) Evaluation ..................... 103

Project #2.18 – Optical Instrument Transformers and Sensors for Protection and Control Systems ............................................................ 104

Project #2.19 – Enable Distributed Demand-Side Strategies & Technologies ......................................................................................... 105


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Project #2.20 – Real-Time Energy Usage Feedback to Customers ............. 107

Project #2.21 – Home Area Network (HAN) for Commercial Customers ...... 108

Project #2.22 – Demand Reduction Through Targeted Data Analytics ........ 110

Project #2.23 – Integrate Demand Side Approaches Into Utility Planning .... 112

Project #2.24 – Appliance Level Bill Disaggregation for Non-Residential Customers ............................................................................................. 114

Project #2.25 – Enhanced Smart Grid Communications .............................. 115

Project #2.26 – Customer & Distribution Automation Open Architecture Devices .................................................................................................. 116

Project #2.27 – Next Generation Integrated Smart Grid Network Management .......................................................................................... 118

Project #2.28 – Smart Grid Communications Path Monitoring ..................... 120

Project #2.29 – Mobile Meter Applications ................................................... 122

Project #2.30 – Leverage EPIC Funds to Participate in Industry-Wide RD&D Programs .................................................................................... 124

Project #2.31 – Aggregated Behind-The-Meter Storage Market/Retail Optimization ........................................................................................... 125

Project #2.32 – Electric Load Management for Ridesharing Electrification ......................................................................................... 126

Project #2.33 – Service Issue Identification Leveraging Momentary Outage Information ................................................................................ 127

Project #2.34 – Predictive Risk Identification with RF Added to Line Sensors .................................................................................................. 129

Project #2.35 – Call Center Staffing Optimization ........................................ 131

Project #2.36 – Dynamic Rate Design Tool .................................................. 132

Project #3.01 – Automated DER Impact & Long-Term Dynamics Evaluation .............................................................................................. 134

Project #3.02 – Utility Aggregated Resources With Market Participation ..... 136


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Project #3.03 – Distributed Energy Resource Management System (DERMS) and ADMS Advanced Functionality ....................................... 138

Project #3.04 – Multi-Nodal Distributed Digital Ledger ................................. 142

Project #3.05 – Virtual DER Markets for Capacity and Other Attributes ....... 144

Project #3.06 – Auto Identification (AutoID) of Behind-the-Meter (BTM) Storage .................................................................................................. 146

Project #3.07 – Utility Scale Storage for Load Balancing ............................. 148

Project #3.08 – Second-Life Batteries for Grid Needs .................................. 150

Project #3.09 – Dynamic Near-Term DER Load Forecasting ....................... 152

Project #3.10 – Grid of the Future Scenario Engine ..................................... 154

Project #3.11 – Location-Specific Options for Reliability and/or Resilience Upgrades .............................................................................. 155

Project #3.12 – Advanced Volt/Var Optimization (VVO) Functionalities ....... 158

Project #3.13 – Transformer Monitoring via FAN ......................................... 159

Project #3.14 – Maintenance Prioritization for Imminent Asset Risk ............ 161

Project #3.15 – Proactive Wires Down Mitigation ......................................... 162

Project #3.16 – Advanced Condition Monitoring for Remote Diagnostics .... 164

Project #3.17 – Generic Universal Distribution Controller (UDC) for Relay, Regulator, LTC, Capacitor, Interrupter Control ........................... 165

Project #3.18 – Transformer Health Monitoring ............................................ 167

Project #3.19 – Unified Network Solution ..................................................... 168

Project #3.20 – Data Analytics for Predictive Maintenance .......................... 169

Project #3.21 – Advanced Vegetation Management Insights Using Prescriptive Analytics ............................................................................. 171

Project #3.22 – Abnormal State Configuration Risk and Mitigation .............. 173

Project #3.23 – Enhanced Distribution Line Equipment Device Settings Management .......................................................................................... 175


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Project #3.24 – Automatic Power Factor (PF) Management ........................ 176

Project #3.25 – Electric Grid Monitoring Meter ............................................. 177

Project #3.26 – Predictive Data Analytics for Proactive Meter Replacement .......................................................................................... 179

Project #3.27 –MPM ..................................................................................... 181

Project #3.28 – Real-Time Load-Based Charging ........................................ 183

Project #3.29 – Advanced Customer Bill Scenario Calculator ...................... 185

Project #3.30 – Connected Device Real-Time Pricing-Based Control .......... 187

Project #3.31 – Real-Time DER Price Signals ............................................. 189

Project #3.32 – System Harmonics for Power Quality Investigations ........... 190

Project #3.33 – Cyber-Physical Integrated Security ..................................... 191

Project #3.34 – Local Wireless Security for Critical Facilities ....................... 192

Project #3.35 – Advance Security of Internet of Things Communications .... 193

Project #3.36 – Cybersecurity for Industrial Control Systems (ICS) ............. 194

Project #3.37 – Augmented Reality .............................................................. 195

Project #3.38 – Voltage Checks ................................................................... 197

Project #3.39 – Optimized Dispatch for Restoration Events ......................... 199

Project #3.40 – Advanced Field Reference Tool .......................................... 200

Project #3.41 – Drone Enablement and Operational Use ............................. 201

Project #3.42 – Electric Load Management for Ridesharing Electrification ......................................................................................... 202

Project #3.43 – Service Issue Identification Leveraging Momentary Outage Information ................................................................................ 203

5. Conclusion .......................................................................................................... 205

A. Key Results for the Year for PG&E EPIC Programs .................................... 205


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B. Next Steps for EPIC Investment Plan ........................................................... 206

C. Issues That May Have Major Impact on Progress in Projects ...................... 207

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2019 ANNUAL REPORT

1. Executive Summary

A. Overview of Program and Plan Highlights Pursuant to the California Public Utilities Commission (CPUC or

Commission) D.12-05-037, Pacific Gas and Electric Company (PG&E or the Company), and the other Administrators of the Electric Program Investment Charge (EPIC) Program were directed to file annual reports each year beginning February 28, 2013 through February 28, 2020 with the Director of the CPUC’s Energy Division.1 Annual Reports shall be served on all parties in the most recent EPIC proceeding, all parties to the most recent GRC of each electric utility, and to each successful and unsuccessful applicant for an EPIC funding award during the previous calendar year. In compliance with Ordering Paragraph 16 of D.12-05-037, and consistent with the Annual Report outline developed collaboratively by the EPIC Administrators and the Public Advocates Office at the California Public Utilities Commission,2 PG&E files its eighth annual report.

In D.12-05-037, the Commission authorized funding in the areas of applied Research and Development (R&D), Technology Demonstration and Deployment (TD&D), and Market Facilitation. The Investor-Owned Utility (IOU) Administrators’ role was limited to TD&D only.

On November 19, 2013, the CPUC issued D.13-11-025, which authorized the first triennial investment period of 2012-2014 (referred to as EPIC 1). On April 15, 2015, the CPUC issued D.15-04-020, which approved the second triennial investment plan period of 2015-2017 (referred to as EPIC 2). On August 10, 2017, the CPUC issued Resolution (Res.) E-4863, which approved two of the six new EPIC projects proposed by PG&E via a Tier 3 Advice Letter 5015-E filed on February 7, 2017, between triennial EPIC

1 The four EPIC Program Administrators are PG&E, SCE, SDG&E, and the California Energy

Commission (CEC). 2 This annual report outline is based on the adopted EPIC Administrator Annual Report

Outline as described in Attachment 5 of D.13-11-025.

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Applications as permitted by D.15-09-005. On April 28, 2017, PG&E filed its A.17-04-028 for the third triennial investment plan period of 2018-2020 (referred to as EPIC 3). On October 25, 2018, the CPUC issued D.18-10-052, which approved the third triennial investment plan period of 2018-2020 but directed utility administrators not to spend, commit or encumber one-third of their respective EPIC program budgets until the commission approves their joint Research Administration Plan (RAP) application. On April 23, 2019, the utilities filed their joint RAP application, and on February 10, 2020, the Commission issued D.20-02-003 approving the RAP application and authorizing the utilities to encumber, commit, and spend the remaining one-third of their EPIC 3 budgets.

This report summarizes PG&E’s projects’ progress and status for the approved funding cycles, which includes TD&D projects in the following areas:

1) Renewables and Distributed Energy Resource (DER) Integration – Integrate DERs, generation and storage; improve transparency of resource information; increase generation flexibility.

2) Grid Modernization and Optimization – Optimize existing grid assets; prepare for emerging technologies; design and demonstrate grid operations of the future.

3) Customer Service and Enablement – Drive customer service excellence through new offerings for PG&E’s customers that enable greater customer choice; integrate Demand-Side Management (DSM) for grid optimization.

4) Cross Cutting/Foundational Strategies and Technologies – Enhance and apply tools to better prepare and respond to natural disasters (e.g., risk analytics, wildfire ignition, and impact efforts), support next generation infrastructure, including smart grid architecture, cybersecurity, telecommunications and standards, as well as other “foundational” activities in support of all three program areas above. PG&E continues to be strongly committed to the EPIC Program and the

value it provides to its customers, as it offers the opportunity to cost-effectively develop and demonstrate innovative technologies which can advance the Company’s core values of Safety, Reliability, Resiliency, and Affordability. Through these projects, the EPIC Program also contributes learnings that

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support important and ambitious California policy priorities, such as Greenhouse Gas (GHG) reduction goals, distributed energy resources, renewable energy targets, and wildfire risk and impact mitigation.

With the climate-induced challenges of increasing wildfires and extreme weather events, increased grid visibility, flexibility and advanced data-driven technology operations are key. Through its EPIC 3 project portfolio, PG&E is actively exploring technologies that can mitigate ignition risk and associated potential impact on public safety. These technologies hold significant promise to advance PG&E’s wildfire risk mitigation, bolster operational capabilities, increase the flexibility of the grid, and allow for greater system resiliency. PG&E’s 2019 TD&D Program Highlights

PG&E launched four EPIC 3 projects and completed an EPIC 1 project between the publishing of the 2018 and 2019 annual reports, which brings the total number of completed projects to date to 34. Currently there are two EPIC 2 projects, and five EPIC 3 projects in flight.

For detailed information on the developments and status of each EPIC 1, EPIC 2, and EPIC 3 project, see Appendix A. EPIC 1

In the first triennial cycle, the EPIC 1 portfolio demonstrated PG&E’s ability to adopt a new model for managing, aligning, tracking and executing research, development and demonstration (RD&D) activities. This portfolio covered a wide spectrum of technologies that help make the electric grid safer, more reliable, and more affordable for customers, and to advance clean energy policy objectives. Most of the EPIC 1 projects closed out in 2017 and examples of their achievements are detailed in prior annual reports.

The final EPIC 1 project, EPIC 1.22 – Demonstrate Subtractive Billing with Submetering for EVs to Increase Customer Billing Flexibility closed out in 2019. Through this project, PG&E identified key elements of third-party EV submetering solutions that will need to be improved before they are deployed to serve the state of California. PG&E identified that for third-party solutions to meet revenue-grade metering standards, improvements will need to be made in metering accuracy, data transfer reliability, and communication network reliability. The project’s purpose, methods, findings, results, and industry-

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relevant learnings are further documented in the final report attached in Appendix B. EPIC 2

The projects from EPIC 2 are even more focused on long-term strategic objectives and in many cases are built on the foundations developed through previous EPIC projects. Most of the EPIC 2 projects closed out in 2018 and 2019, and examples of their achievements are detailed in prior annual reports. The last two EPIC 2 projects will close in 2020:

EPIC 2.34 - Predictive Risk Identification with Radio Frequency (RF)

Added to Line Sensors is demonstrating the use of RF sensor technology that could allow PG&E to more effectively identify and locate degrading assets and risks of failure in the distribution system, to enable proactive maintenance and further safety and resiliency. Field demonstration of RF-based sensors is underway on live distribution circuits. The technology employs the use of pole-mounted RF-based sensors for incipient fault detection by monitoring partial discharge events, which may be caused by broken insulators, mechanical damage, or vegetation contact. In parallel, an alternative technology, which uses advanced algorithms to analyze voltage and current waveform data for proactive fault anticipation, is also being demonstrated to compare the performance and effectiveness of RF-based technologies.

EPIC 2.36 - Customer Rate Design Tool is demonstrating that through a software platform, PG&E can more systematically and efficiently explore new experimental rate designs, including those that could yield more equitable, cost-based rate structures that minimize cross-subsidies within revenue classes. This tool enables complex rate design exploration for DER adoption, provides a faster and more robust approach to rate design and leverages big data technology to evaluate hypothetical new rate structures based on full information with nuanced sensitivity analysis. This project is in its closeout phase. EPIC 3

In 2019 PG&E launched four EPIC 3 projects with an increased focus on safety and resiliency. Projects focus on wildfire risk reduction and Public Safety Power Shutoff (PSPS) impact reduction. Five other projects are in the planning phase with expected launch by mid-2020.

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EPIC 3.03 - Advanced Distributed Energy Resource Management Systems (DERM) and Advanced Distribution Management System (ADMS) is developing a DERMS head-end system and associated interfaces for DER telemetry & control and demonstrating this system on: (1) an operational remote grid and (2) non-grid DERs participating in a Non-Wire Alternative (NWA) project. If successful, this project could inform operating strategies and produce capabilities to significantly increase the flexibility of the grid and provide fundamental capabilities to reduce overall wildfire risk exposure and increase resilience for customers. The project could also reduce the cost of telemetry associated with large scale DERs interconnected to PG&E’s grid.

EPIC 3.11 – Location Targeted DERs is configuring the Arcata-Eureka airport’s local microgrid controller to integrate with PG&E’s distribution network and enable Distribution Control Center visibility and control of the microgrid. The project is developing scalable and replicable approaches to planning, designing, deploying and operating multi-customer microgrids. The results of this project could inform operating strategies and produce capabilities to significantly increase the flexibility of the grid and provide fundamental capabilities to advance system resiliency.

EPIC 3.15 – Proactive Wire Down Mitigation is demonstrating Rapid Earth Fault Current Limiter (REFCL) technology at a PG&E substation serving a high fire-risk area, to assess its effectiveness at automatic current reduction in wires-down events, with the goal of drastically reducing the likelihood of wires down events causing wildfires.

EPIC 3.20 – Data Analytics for Predictive Maintenance is leveraging Geographic Information System (GIS), weather, SmartMeter™, Supervisory Control and Data Acquisition (SCADA) and other data to develop and demonstrate analytical models that predict when maintenance will be needed for distribution assets. If successful, this project could significantly improve PG&E’s ability to proactively predict imminent asset failure. This will result in reducing the number of asset failures, which will reduce public safety risk and the risk of wildfire ignition.

EPIC 3.43 – Momentary Outage Analytics is developing analytical models that use Advanced Metering Infrastructure (AMI) momentary events and trap alarms to identify issues with customer service drops, insulator failures, and

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intermittent vegetation contact. The data model developed through this project, which analyzes SmartMeter™ data with higher granularity, could proactively predict imminent distribution equipment failures before they occur. This capability may result in more immediate or tactical recommendations for actions to mitigate distribution system risks, thereby reducing public safety risk. Potential Benefits

Upon closeout of EPIC 3 projects, PG&E will report forward-looking estimates of potential benefits if the technology is deployed in production. PG&E will also report the quantification of any benefits realized during the demonstration. PG&E will continue to provide updates on realized benefits for key projects after they have closed through its subsequent EPIC Annual Reports. This information will support the establishment of the joint EPIC database directed in D.8-10-052. EPIC 3 projects are expected to start closing in 2021. EPIC Intellectual Property

In 2019, PG&E was granted patents with the United States Patent and Trademark Office and international protection through the Patent Cooperation Treaty for the following EPIC projects: EPIC 1.21 – Pilot Methods for Automatic Identification of DERs (such as

Solar Photovoltaics (PV)) as They Interconnect to the Grid to Improve Safety & Reliability: Patent for an algorithm which can detect unauthorized PV interconnections.

EPIC 2.29 – Mobile Meter Applications (NextGen Meter – NGM): Patent on mobile meter with modular housing/board assembly Before 2019, PG&E filed for non-provisional patent protection for the

following EPIC projects: EPIC 1.14 – Demonstrate “Next Generation” SmartMeter™ Telecom

Network Functionalities: Patent for the development of the Smart Pole Meter, Smart Pole Meter Socket, Patent for an algorithm to help identify downed wires.

EPIC 2.26 – Customer and Distribution Automation Open Architecture

Devices: Patent for algorithms to communicate and control edge devices through the Advanced Metering Infrastructure (AMI) network.

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An additional provisional patent was also filed for the following EPIC project: EPIC 2.22 – Demand Reduction Through Targeted Data Analytics:

Provisional patent for system and server for parallel processing mixed integer programs for load management. These patents may provide potential future revenue generating

opportunities that would be shared with PG&E’s customers and shareholders,3 and ultimately support improved affordability if the patents lead to increased revenue. PG&E continues to consider opportunities to license patents, as well as opportunities to identify additional Intellectual Property in these and other projects. Further Technology Advancement Needs

It is important to recognize the value of EPIC in determining that a technology is not ready to scale and identifying necessary improvements that can help bring technologies to market. For example, through EPIC 1.22 – Demonstrate Subtractive Billing with Submetering for EVs to Increase Customer Billing Flexibility Project, PG&E identified that for third-party solutions to meet revenue-grade metering standards, improvements will need to be made in metering accuracy, data transfer reliability, and communication network reliability.

EPIC also helps to identify where technology advancement is necessary before it is considered for adoption on a larger scale, which ultimately supports affordability for customers by ensuring the solution has high potential to transition from the demonstration stage to deployment stage. One such effort is being pursued in EPIC 2.34 Predictive Risk Identification with RF Added to Line Sensors. Through the ongoing demonstration of pre-commercial RF-based sensors to detect incipient faults on distribution circuits, the project team has been acquiring valuable lessons learned through field testing at a demonstration scale. The team has provided prescriptive feedback to

3 The revenue sharing mechanism is based on the guidance provided in CPUC D.13-110-25

OP 34, which states: [IOUs] must apply a 75 percent/25 percent (ratepayer/shareholder) revenue sharing mechanism for net revenues (from future or ongoing royalties, license fees, and other “financial benefits of IP”) related to financial benefits of IP that was developed under IOU contracts with Electric Program Investment Charge funds.

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vendors, such as ideas on product miniaturization and design improvements to enable more efficient installation and maintenance, all of which will help advance the technology to a more mature level for eventual deployment at a larger scale. Status of Programs

In D.13-11-025, the CPUC approved 27of the 29 projects proposed by PG&E in the EPIC 1 Investment Plan, since two projects were formally withdrawn by PG&E prior to the issuance of this decision.4 In D.15-04-020, the Commission approved the 31 projects proposed by PG&E in the EPIC 2 Plan.5 In Res.E-4863, the Commission approved two of the six projects proposed by PG&E in the Tier 3 AL 5015-E filed between triennial EPIC Applications.6 On April 28, 2017, PG&E filed A.17-04-028 for the third triennial investment plan period of 2018-2020 (referred to as EPIC 3) which included 43 proposed projects. On October 25, 2018 in D.18-10-052, the Commission approved the 43 projects in PG&E’s proposed EPIC 3 Investment Plan with minor modifications. The Commission also required the utilities to file a joint application containing a RAP, identifying program administration improvements in response to the 2017 EPIC program evaluation within 180 days and required utilities not to commit, encumber or spend one-third of their EPIC 3 budgets until a subsequent decision that approved RAP. On April 23, 2019, the utilities filed their joint RAP application, and on February 10, 2020, the Commission issued D.20-02-003 approving the RAP application and authorizing the utilities to encumber, commit, and spend the remaining one-third of their EPIC 3 budgets.

4 In the EPIC 1 Plan (A.12-11-003), PG&E originally proposed 26 projects. Project 1.09 was

subsequently split into three projects and project 1.10 was split into two projects, resulting in a total of 29 projects. The projects formally withdrawn by PG&E were projects 1.04 and 1.07.

5 In the EPIC 2 Plan (A.14-05-003), PG&E originally proposed 30 projects. Per CPUC D.15-04-020 to include an assessment of the use and impact of EV energy flow capabilities, Project 2.3 was split into two projects, resulting in a total of 31 projects.

6 In the Tier 3 Advice Letter 5015-E filed between triennial EPIC applications, PG&E originally proposed six projects. CPUC Res.E-4863 approved two (Projects 2.34 and 2.36) of the six proposed projects, allowed PG&E’s withdrawal of one project (Project 2.31), deferred two projects to a future investment plan (Projects 2.32 and 2.33) and rejected one project (Projects 2.35).

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EPIC Administrators continue to participate in regular review meetings, conduct joint webinars and workshops, and regularly collaborate on EPIC-related matters. The EPIC Administrators generally meet bi-weekly to discuss EPIC and their respective objectives for the program, as well as to ensure collaboration and avoid duplication.

PG&E has an internal governance structure that ensures approved projects within the TD&D Program adhere to the EPIC guiding principles and requirements, as well as the potentially changing marketplace and evolving technologies to ensure PG&E maximizes this program to continue to meet customer needs while maintaining safety, reliability, resiliency, and affordability of the grid. With the Commission’s issuance of D.20-02-003 approving the RAP application and authorizing the utilities to encumber, commit, and spend the remaining one-third of their EPIC 3 budgets, PG&E will define, prioritize, select and launch a second wave of EPIC 3 projects. Prior to selection and launch of this wave of projects, PG&E will facilitate a public workshop with EPIC stakeholders to gather and incorporate input on the proposed projects.

The following table summarizes the projects’ funding status by area and triennial investment plan program cycle as of December 31, 2019.

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stra

te N

ew R

esou

rce

Fore

cast

Met

hods

to

Bette

r Pre

dict

Var

iabl

e R

esou

rce

Out

put

*Com

mitt

ed F

undi

ng: $

6.0M

- $7

.3M

Proj

ects

: 5

2.0

2 Pi

lot D

ERM

Ss

2.0

3A T

est S

I Enh

ance

d C

apab

ilitie

s –

PV

2.0

3B T

est S

I Enh

ance

d C

apab

ilitie

s –

Vehi

cle

to H

ome

2

.04

DG

mon

itorin

g &

Volta

ge

Trac

king

2

.05

Iner

tia R

espo

nse

Emul

atio

n fo

r DG

impa

ct im

prov

emen

t C

omm

itted

Fun

ding

: $13

.7M

- $1

5.6M

Proj

ects

: 2

3.0

3 D

ERM

S an

d AD

MS

Adva

nced

Fu

nctio

nalit

y 3

.11

Loca

tion-

Spec

ific

Opt

ions

for

Rel

iabi

lity

and/

or R

esilie

nce

Upg

rade

s C

omm

itted

Fun

ding

: $5.

5M –

6.8

M

Proj

ects

: 13

C

omm

itted

Fun

ding

: $2

5.2M

- $2

9.7

Grid Modernization & Optimization

Proj

ects

: 7

1.0

8 Im

prov

e D

istri

butio

n Sy

stem

Saf

ety

& R

elia

bilit

y th

roug

h N

ew D

ata

Anal

ytic

s Te

chni

ques

1

.09A

Tes

t New

Rem

ote

Mon

itorin

g an

d C

ontro

l Sy

stem

s fo

r Exi

stin

g Tr

ansm

issi

on &

Dis

tribu

tion

Asse

ts:

Clo

se P

roxi

mity

Sw

itchi

ng

1.0

9B/1

.10B

- Te

st N

ew R

emot

e M

onito

ring

& C

ontro

l Sy

stem

for T

&D A

sset

s / D

emon

stra

te N

ew S

trate

gies

an

d Te

ch to

Impr

ove

the

Effic

acy

of E

xist

ing

Mai

nten

ance

and

Rep

lace

men

t Pro

gram

s

1.0

9C T

est N

ew R

emot

e M

onito

ring

and

Con

trol

Syst

ems

for T

&D A

sset

s: D

iscr

ete

Serie

s R

eact

ors

1

.14

Dem

onst

rate

“Nex

t Gen

erat

ion”

Sm

artM

eter

™

Tele

com

Net

wor

k Fu

nctio

n

1.1

5 D

emon

stra

te N

ew T

echn

olog

ies

and

Stra

tegi

es

That

Sup

port

Inte

grat

ed “C

usto

mer

-to-M

arke

t-to-

Grid

” O

pera

tions

of t

he F

utur

e

1.1

6 D

emon

stra

te E

lect

ric V

ehic

le a

s a

Res

ourc

e to

Im

prov

e G

rid P

ower

Qua

lity

and

Red

uce

Cus

tom

er

Out

ages

C

omm

itted

Fun

ding

: $16

.1M

- $1

9.7M

Proj

ects

: 5

2.0

7 R

eal T

ime

Load

ing

Dat

a fo

r D

istri

butio

n O

pera

tions

&

Plan

ning

2

.10

Emer

genc

y Pr

epar

edne

ss

Mod

elin

g

2.1

4 Au

tom

atic

ally

Map

Pha

sing

In

form

atio

n 2

.15

Sync

hrop

haso

r App

licat

ions

fo

r Gen

erat

or D

ynam

ic M

odel

Va

lidat

ion

2

.34

Pred

ictiv

e R

isk

Iden

tific

atio

n w

ith R

F Ad

ded

to L

ine

Sens

ors

Com

mitt

ed F

undi

ng: $

10.4

M-

$11.

8M

Proj

ects

: 5

3.1

3 Tr

ansf

orm

er M

onito

ring

via

Fi

eld

Area

Net

wor

k (F

AN)

3.1

5 Pr

oact

ive

Wire

s D

own

Miti

gatio

n 3

.20

Dat

a An

alyt

ics

for P

redi

ctiv

e M

aint

enan

ce

3.2

1 Ad

vanc

ed V

eget

atio

n M

anag

emen

t Ins

ight

s us

ing

Pres

crip

tive

Anal

ytic

s 3

.43

Serv

ice

Issu

e Id

entif

icat

ion

Leve

ragi

ng M

omen

tary

Out

age

Info

rmat

ion

Com

mitt

ed F

undi

ng: $

13.6

M -

$16.

5M

Proj

ects

: 17

C

omm

itted

Fun

ding

: $4

0.1M

- $4

8.0M

-11-

TAB

LE1:

SU

MM

AR

Y O

F PR

OJE

CT

STA

TUS

AN

D F

UN

DIN

G B

Y PR

OG

RAM

CYC

LE

(CO

NTI

NU

ED)

EPIC

Pr

ogra

m

Area

s EP

IC 1

EP

IC 2

EP

IC 3

To

tal

Customer Service & Enablement

Proj

ects

: 7

1.1

8 D

emon

stra

te S

mar

tMet

er™

-Ena

bled

Dat

a An

alyt

ics

to P

rovi

de C

usto

mer

s W

ith A

pplia

nce-

Leve

l Ene

rgy

Use

In

form

atio

n

1.1

9 Pi

lot E

nhan

ced

Dat

a Te

chni

ques

and

Cap

abilit

ies

via

the

Smar

tMet

er™

Pla

tform

1

.21

Pilo

t Met

hods

for A

utom

atic

Iden

tific

atio

n of

DER

s (S

uch

as S

olar

PV)

as

They

Inte

rcon

nect

to th

e G

rid to

Im

prov

e Sa

fety

& R

elia

bilit

y 1

.22

Dem

onst

rate

Sub

tract

ive

Billin

g W

ith S

ubm

eter

ing

for E

Vs to

Incr

ease

Cus

tom

er B

illing

Fle

xibi

lity

1

.23

Dem

onst

rate

Add

itive

Billi

ng W

ith S

ubm

eter

ing

for

PVs

to In

crea

se C

usto

mer

Billi

ng F

lexi

bilit

y

1.2

4 D

emon

stra

te D

SM fo

r T&D

Cos

t Red

uctio

n 1

.25

Dev

elop

a T

ool t

o M

ap T

he P

refe

rred

Loca

tions

for

DC

Fas

t Cha

rgin

g, B

ased

on

Traf

fic P

atte

rns

and

PG&E

's D

istri

butio

n Sy

stem

, to

Addr

ess

EV D

river

s'

Nee

ds W

hile

Red

ucin

g th

e Im

pact

on

PG&E

's

Dis

tribu

tion

Grid

C

omm

itted

Fun

ding

: $8.

7M -

$10.

6M

Proj

ects

: 5

2.

19 E

nabl

e D

istri

bute

d D

eman

d-Si

de S

trate

gies

& T

echn

olog

ies

2.21

Hom

e Ar

ea N

etw

ork

(HAN

) for

C

omm

erci

al C

usto

mer

s

2.

22 D

eman

d R

educ

tion

thro

ugh

Targ

eted

Dat

a An

alyt

ics

2.23

Inte

grat

e D

eman

d Si

de

Appr

oach

es in

to U

tility

Pla

nnin

g

2.

36 D

ynam

ic R

ate

Des

ign

Tool

C

omm

itted

Fun

ding

: $9.

3M-$

10.5

M

Proj

ects

: 2

3.27

Mul

ti-Pu

rpos

e M

eter

(MPM

)

3.32

Sys

tem

Har

mon

ics

for P

ower

Q

ualit

y In

vest

igat

ions

C

omm

itted

Fun

ding

: $4.

3M -

$5.3

M

Proj

ects

: 14

Com

mitt

ed F

undi

ng:

$22.

3M -

$26.

4M

Cross-Cutting/ Foundational

Proj

ects

: 0

Com

mitt

ed F

undi

ng: $

0M

Proj

ects

: 4

2.

26 C

usto

mer

& D

istri

butio

n Au

tom

atio

n O

pen

Arch

itect

ure

Dev

ices

2.27

Nex

t Gen

erat

ion

Inte

grat

ed

Smar

t Grid

Net

wor

k M

gmt.

2.28

Sm

art G

rid C

omm

unic

atio

ns

Path

Mon

itorin

g

2.

29 M

obile

Met

er A

pplic

atio

ns

Com

mitt

ed F

undi

ng: $

6.9M

-$7.

8M

Proj

ects

: 1

3.

41 D

rone

Ena

blem

ent a

nd

Ope

ratio

nal U

se

Com

mitt

ed F

undi

ng: $

2.1M

- $2

.5M

Proj

ects

: 5

Com

mitt

ed F

undi

ng:

$9.0

M -

$10.

3M

Sum

mar

y

Tota

l Fun

ded

Proj

ects

: 17

To

tal C

omm

itted

Fun

ding

: $30

.8M

-$37

.7M

To

tal P

roje

ct F

undi

ng E

ncum

bere

d: $

22.0

M

Tota

l Pro

ject

Fun

ding

Spe

nt to

Dat

e: $

34.6

M

Tota

l Adm

inis

trat

ive

Cos

ts S

pent

to D

ate:

$3.

0M

Tota

l Fun

ded

Proj

ects

: 19

To

tal C

omm

itted

Fun

ding

: $40

.2M

-$4

5.7M

To

tal P

roje

ct F

undi

ng

Encu

mbe

red:

$24

.7M

To

tal P

roje

ct F

undi

ng S

pent

to

Dat

e: $

43.3

M

Tota

l Adm

inis

trat

ive

Cos

ts S

pent

to

Dat

e: $

4.4M

Tota

l Fun

ded

Proj

ects

: 10

Tota

l Com

mitt

ed F

undi

ng: $

25.6

M –

$3

1.0M

To

tal P

roje

ct F

undi

ng

Encu

mbe

red:

3.4

M

Tota

l Pro

ject

Fun

ding

Spe

nt to

D

ate:

$3.

9M

Tota

l Adm

inis

trat

ive

Cos

ts S

pend

to

Dat

e: $

0.5M

k

Tota

l Fun

ded

Proj

ects

: 46

To

tal C

omm

itted

Fun

ding

: $9

6.6

- $11

4.4M

To

tal P

roje

ct F

undi

ng

Encu

mbe

red:

$50

.1M

To

tal P

roje

ct F

undi

ng

Spen

t to

Dat

e: 8

1.8M

To

tal A

dmin

istr

ativ

e C

osts

Sp

ent t

o D

ate:

$7.

5M

Pro

ject

s ar

e pr

iorit

ized

thro

ugh

an in

tern

al g

over

nanc

e pr

oces

s in

ord

er to

man

age

com

mitt

ed fu

ndin

g. R

emai

ning

fund

s m

ay, a

s ne

eded

, be

redi

rect

ed to

oth

er a

ppro

ved

proj

ects

in o

rder

to e

ffici

ently

util

ize

cust

omer

fund

s.

-12-

2. Introduction and Overview

A. Background on EPIC The EPIC Program is designed to assist the development of

pre-commercialized, new, and emerging energy technologies in California, while providing assistance to commercially viable projects. Through EPIC, PG&E develops and demonstrates innovative technologies that advance a broad array of objectives including grid safety, resiliency and reliability as well as customer enablement, and integration of renewable and DERs.

EPIC demonstration projects aid in identifying key requirements and insights to inform full deployment in a manner that strategically aligns the integration of technologies with existing operations. Given the rapidly evolving energy landscape and the impact of climate change in California, the continuation of technology innovation programs like EPIC is critical to the continued advancements of grid capabilities to enable advancements on safety and resiliency.

Funding for EPIC is authorized in Public Utilities Code (Pub. Util. Code) Section 399.8, which governed the Public Goods Charge (PGC) until expiration on January 1, 2012. The Commission opened an Order Instituting Rulemaking (OIR) (Rulemaking) (R.11-10-003) to establish the Electric Program Investment Charge to preserve funding for the public ratepayer benefits associated with the renewables and RD&D activities provided by the electric PGC. The rulemaking included two phases, with Phase 1 to establish the EPIC Program on an interim basis in 2012, and Phase 2 to establish purposes and governance for EPIC to continue from 2013-2020.7 The EPIC Program Administrators include the CEC and three Electric IOUs: PG&E, SCE, and SDG&E.

In its Phase I Decision Establishing Interim Research, Development and Demonstrations and Renewables Program Funding Levels (D.11-12-035), the CPUC established 2012 funding at approximately $142 million, and authorized PG&E, SCE, and SDG&E to institute the EPIC Program, effective January 1, 2012, to collect funds for renewables programs, and RD&D programs at the same level authorized in 2011. Additionally, the surcharge was imposed on all

7 See Phase 1 D.11-12-035 and Phase 2 D.12-05-037.

-13-

distribution customers based on the existing rate allocation between customer classifications, and collected in the Public Purpose Program component of rates.

On May 24, 2012, the Commission issued its Phase 2 Decision Establishing Purposes and Governance for Electric Program Investment Charge and Establishing Funding Collections for 2013-2020. The decision established an annual funding amount of $162 million for the 2012-2014 EPIC Program cycle (EPIC 1) and set the funding allocations among the three IOUs as 50.1 percent, 41.1 percent and 8.8 percent for PG&E, SCE, and SDG&E, respectively.8 On April 15, 2015, the CPUC issued D.15-04-020, which approved the second triennial investment plan period of 2015-2017 (EPIC 2). On October 25, 2018 in D.18-10-052, the Commission approved the third triennial investment plan period of 2018-2020 (EPIC 3) and ordered the utilities to jointly develop and file a RAP application that identified improvements the utilities would make in response to the recommendations made in the independent EPIC program evaluation. On April 23, 2019, the utilities filed their joint RAP application, and on February 10, 2020, the Commission issued D.20-02-003 approving the RAP application and authorizing the utilities to encumber, commit, and spend the remaining one-third of their EPIC 3 budgets.

B. EPIC Program Components Authorized by D.12-05-037, the EPIC Program is to fund investments in

the following three areas: (1) Applied R&D; (2) TD&D; and (3) Market Facilitation which consists of market research, regulatory permitting and streamlining, and workforce development activities. PG&E and the other IOU administrators were designated to administer EPIC funds only in the area of TD&D. The CEC was designated to administer funds in all areas, including a portion of TD&D.

8 OP 7 of D.12-05-037 requires the total collection amount to be adjusted on January 1, 2015

and January 1, 2018 commensurate with the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter, for the previous three years.

-14-

C. EPIC Program Regulatory Process D.12-05-037 defines the regulatory process and governance for the EPIC

Program. The decision requires EPIC Program Administrators to submit Triennial Investment Plans to cover 3-year cycles for 2012-2014, 2015-2017, and 2018-2020. The investment plans must include details about planned investments, as well as criteria for selecting and evaluating proposals. Each plan must be evaluated and approved by the Commission prior to program implementation. To date, Administrators have filed three Triennial Investment Plans for 2012-2014, 2015-2017 and 2018-2020. On October 25, 2018 in D.18-10-052, the Commission approved the EPIC 3 Investment Plan. In addition to the Triennial Investment Plans, the Administrators are required to file Annual Reports each year on February 28 through 2020, as well as Final Reports for each project.

D. Coordination In order to ensure adequate coordination of the EPIC Program, the EPIC

Administrators continue to participate in regular review meetings, conduct joint webinars and workshops, and regularly collaborate on EPIC-related matters. The EPIC Administrators generally meet bi-weekly to discuss EPIC and their respective objectives for the program, as well as to ensure collaboration and avoid duplication.

The IOU Administrators also continue to work together to leverage consistent approaches, where feasible, for meeting the objectives of the EPIC Program. This collaboration resulted in the development of a common EPIC framework, approved by the Commission in D.13-11-025, to help guide the individual IOU investment plans.

The CPUC established the Policy + Innovation Coordination Group (PICG) in D.18-01-008 and D.18-10-052. The PICG will identify opportunities for policy and innovation coordination, provide expertise, knowledge and analysis, and support coordination and feedback between administrators and the CPUC. Per D.18-10-052, PG&E is responsible for administering the contract with PICG Project Coordinator and acting as the fiscal manager on behalf of the CPUC. On December 27th, 2019 PG&E executed this contract. PG&E looks forward to continuing to coordinate with the EPIC Administrators and CPUC through this framework.

-15-

E. Transparent and Public Process The Program’s Administrators hold stakeholder workshops during the

planning and implementation of the EPIC Triennial Investment Plans to ensure stakeholder feedback is received and incorporated. These stakeholder workshops to prepare for the Third Triennial Investment Plan were executed at the beginning of 2017 in advance of the EPIC 3 Application. Additionally, Administrators continue to engage with industry stakeholders by participating in and presenting at conferences, as well as hosting workshops/symposiums annually.

During the planning of the RAP application, which was submitted to CPUC on April 23, the Utilities engaged extensively with the CEC, peer R&D groups, disadvantaged community (DAC) groups and other interested stakeholders through a total of 13 stakeholder engagement sessions, to help define improvements to the utilities’ program administrative practices.

In 2019, the EPIC Administrators conducted the EPIC Symposium on February 19 in Sacramento, California, and the EPIC Fall Workshop on November 8 in San Diego, California.

In the EPIC Symposium, PG&E presented EPIC 2.22 - Demonstrate Subtractive Billing With Submetering for EVs to Increase Customer Billing Flexibility and also jointly facilitated with the Utilities a preliminary RAP workshop with EPIC stakeholders.

In the EPIC Fall Workshop the objectives were to inform stakeholders on changes to the EPIC program such as the new PICG, provide the status overview of launched and upcoming EPIC 3 projects, and facilitate discussion on the RAP and future stakeholder engagement plans. Public notice for these events is provided to a broad range of stakeholders including technology vendors, DAC, diverse suppliers, researchers, academics and energy consultants. The utilities and the CEC will continue to maintain transparency in the process via webinars and workshops.

Now that the Commission issued D.20-02-003 approving the RAP application and authorizing the utilities to encumber, commit, and spend the remaining one-third of their EPIC 3 budgets, PG&E will plan to launch a second wave of EPIC 3 projects. Prior to the selection and launch of projects,

-16-

PG&E will facilitate a public workshop with EPIC stakeholders to gather input on the proposed projects that will inform the details of their scoping.

Furthermore, PG&E’s EPIC Program continues to remain accessible to the interested public. PG&E’s EPIC website (www.pge.com/epic) includes EPIC Program information and updates, as well as EPIC annual reports and projects’ final reports.

3. Budget

A. Authorized Budget The following table outlines the total Program, Administrative, and CPUC

regulatory oversight budget for each triennial cycle.

TABLE 2: TOTAL AUTHORIZED BUDGET BY PROGRAM CYCLE

Total Authorized Budgets

PG&E Program Budget

(TD&D only)

PG&E Admin. Budget

(TD&D only)

CEC Program Budget* (TD&D,

Applied R&D, & Market

Facilitation)

CEC Admin Budget*

(TD&D, Applied R&D, & Market

Facilitation)

CPUC Regulatory Oversight

Budget

EPIC 1: 2012-2014 $43.3 Million $4.9 Million $166.2 Million $18.5 Million $1.2 Million

EPIC 2: 2015-2017 $45.7 Million $5.1 Million $182.9 Million $20.4 Million $1.3 Million

EPIC 3: 2018-2020 $49.7Million $5.5 Million $199.1 Million $22.2 Million $1.4 Million

*portion remitted by PG&E

B. Commitments9/Encumbrances10 The following table outlines the PG&E total financial commitments and

encumbrances, as well the remittances made to both the CEC and CPUC beginning from program inception through December 31, 2019.

9 Per CPUC D.13-11-025, “committed funds” are monies budgeted for a particular project.

The committed fund range is defined as the project is approved through PG&E’s internal governance process.

10 Per CPUC D.13-11-025, “encumbered funds” refer to monies specified within contracts signed during a previous triennial investment plan cycle and associated with specific activities under that contract.

-17-

TABLE 3: TOTAL COMMITMENTS/ENCUMBRANCES BY PROGRAM CYCLE

Commitments/ Encumbrances

PG&E Total Commitments*

PG&E Total Encumbrances**

CEC Program Remittance

CEC Admin Remittance

CPUC Remittance

EPIC 1: 2012-2014 $30.8 - $37.7 Million $22.5 Million $166.2 Million $18.5 Million $1.2 Million

EPIC 2: 2015-2017 $40.2 - $45.7 Million $24.7 Million $171.9 Million $20.4 Million $1.3 Million

EPIC 3: 2018-2020 $25.6 – 31.0 Million $3.5 Million $17.1 Million $16.2 Million $0.9 Million

*PG&E Total Commitments do not include PG&E Admin costs. **Some encumbered funds amounts have been retroactively updated to reflect some previous duplication in systems.

C. Dollars Spent on In-House Activities The following table outlines the PG&E total in-house project expenditures

and administrative costs, beginning from program inception through December 31, 2019.

TABLE 4: TOTAL DOLLARS SPENT ON IN-HOUSE ACTIVITIES BY PROGRAM CYCLE

Program Cycle PG&E In-House TD&D Project Expenditures *

PG&E In-House Program Administrative Costs

EPIC 1: 2012-2014 $11.5 Million $1.8 Million

EPIC 2: 2015-2017 $19.6 Million $3.4 Million

EPIC 3: 2018-2020 $2.7 Million $0.5 Million *PG&E In-House TD&D Project Expenditure includes internal staffing and staff augmentation at the project level. Some "Funds Expended to date: Contract/Grant Amount ($)" and "Funds Expended to date: In house expenditures ($)" have been updated. PG&E transitioned to a new cost model in 2016 that included changes to the structure of the allocation of overheads resulting in a change to how certain costs settled.

D. Fund Shifting Above 5 Percent between Program Areas All PG&E projects are within TD&D; therefore, there has been no fund

shifting between program areas.

E. Uncommitted/Unencumbered Funds11 Projects without committed funding are pending further project and

benefits analysis. The range of uncommitted funds is dependent on the range of authorized budget and committed funds as identified in Sections 3a and 3b, respectively. The following table outlines the PG&E

11 “Uncommitted” and “Unencumbered” funds refer to monies that are not identified in

solicitation plans or obligated to a particular project—these funds are considered unspent.

-18-

uncommitted/unencumbered funding for each program cycle as of December 31, 2019.

TABLE 5: TOTAL UNCOMMITTED/UNENCUMBERED FUNDS BY PROGRAM CYCLE

Program Cycle Uncommitted/Unencumbered

Project Funds

EPIC 1: 2012-2014 $5.5 – $9.1 Million

EPIC 2: 2015-2017 $0 – $2.4 Million

EPIC 3: 2018-2020 $18.7 – 24.1 Million

F. Directly Awarded Funds As filed in the RAP12, PG&E will provide justification for all directly-

awarded contracts and provide project and summary level information in the annual report. Overarching company policy is to fill out a Direct Award Request Form, as included in Appendix B of RAP, for proposed direct award of $250,000 or greater. This amount will be $75,000 for EPIC projects starting 2020. Justifications for direct awards are provided in Appendix A. The following table summarizes the PG&E directly awarded contracts executed in 2019 at the onset of EPIC 3. PG&E is in the process of competitively bidding a number of additional contracts that will be reflected in the 2020 report.

TABLE 6: TOTAL DIRECTLY AWARDED FUNDS BY PROGRAM CYCLE

Program Cycle PG&E Total Vendor Contract Amount

PG&E Directly-Awarded Vendor Contract Amount

Directly-Awarded Contract Proportion

EPIC 3: 2018-2020 $3.3 Million $3.3 Million 100%

12 Joint Application Of Southern California Edison Company (U 338-E), Pacific Gas And

Electric Company (U 39-E), And San Diego Gas & Electric Company (U 902-E) For Approval Of The Research Administration Plan For The Electric Program Investment Charge https://www.pge.com/pge_global/common/pdfs/about-pge/environment/what-we-are-doing/electric-program-investment-charge/EPIC-3-Application-Joint.pdf

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G. Match Funding As filed in RAP13, PG&E will start reporting match funding to date

beginning with its EPIC 3 projects. PG&E’s EPIC 3 projects launched to-date have not received match funding.

4. Projects

A. Summary of Project Funding For a summary of project funding please refer to Table 1 in Section 1b.

B. Project Status Report (See Appendix A) See Project Status Report, Appendix A, with project details as of

December 31, 2019. The Project Status Report is based on the format provided in Attachment 6 of D.13-11-025.

C. Project Descriptions and Updates The project descriptions and updates included below are for EPIC 1,

EPIC 2, and EPIC 3 projects. Projects that are on hold have been included in the summary.

13 Ibid.

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Project #1.01 – Energy Storage End Uses

i. Investment Plan Period 1st Triennial (2012-2014)

ii. Assignment to Value Chain Grid Operation/Market Design

iii. Objective Develop technologies and strategies for efficient and optimized bidding and

scheduling of Energy Storage Technologies (EST) in California Independent System Operator (CAISO) markets and demonstrate those strategies using PG&E’s existing Sodium Sulfur Battery Energy Storage Systems (NaS BESS).

This project addresses the following CPUC proceedings: As applicable, operational experiences gained from this project can inform

outstanding policy and implementation issues as identified in Energy Storage OIR, R.15-03-011.

iv. Scope Develop and deploy technology to enable automated resource response to

CAISO market awards. Quantify the values that battery resources can capture in CAISO markets. Establish financial performance of battery resource participation in CAISO

markets. v. Deliverables

Demonstrate automated and remote-control application for generic energy storage resources to interface with existing SCADA systems.

Report financial performance from participation in CAISO markets. Report comparison of actual performance vs. hypothetical performance

quoted in industry reports. Comply with regulatory requirements and establish

framework/recommendations for accounting standards applicable to energy storage.

vi. Metrics

1i – Nameplate capacity (megawatts) of grid-connected energy storage. 3a – Maintain/Reduce operations and maintenance costs. 6a – CAISO NGR financial settlements. 7b – Increased use of cost-effective digital information and control technology

to improve reliability, security, and efficiency of the electric grid (Pub. Util. Code § 8360).

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7c – Dynamic optimization of grid operations and resources, including appropriate consideration for asset management and utilization of related grid operations and resources, with cost-effective full cyber security (Pub. Util. Code § 8360).

7l – Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services (Pub. Util. Code § 8360).

9c – EPIC project results referenced in regulatory proceedings and policy reports (Business Plan references: CPUC R.10-12-007).

vii. Schedule 2.75 years

viii. EPIC Funds Encumbered $ $698,506

ix. EPIC Funds Spent $1,833,968

x. Partners (if applicable) N/A

xi. Match Funding (if applicable) N/A

xii. Match Funding Split (if applicable) N/A

xiii. Funding Mechanism (if applicable) Pay for performance

xiv. Treatment of Intellectual Property (if applicable) N/A

xv. Status Update Project completed in 2016. Final Report was included in 2016 EPIC Annual Report.

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Project #1.02 – Demonstrate the Use of Distributed Energy Storage for Transmission and Distribution (T&D) Cost Reduction


ii. Assignment to Value Chain Distribution; Grid Operation/Market Design

iii. Objective Demonstrate the ability of a utility operated energy storage asset to address

capacity overloads on the distribution system and improve reliability. This project addresses the following CPUC proceedings:

This project will count towards the IOU energy procurement targets as set forth in D.10-03-040, the Energy Storage Procurement Framework.

As applicable, operational experiences gained from this project can inform outstanding policy and implementation issues as identified in Energy Storage OIR R.15-03-011.

iv. Scope Deploy utility operated energy storage asset at a single site. Demonstrate peak shaving use case along with other site-specific use cases

as suggested by distribution operators (DO). v. Deliverables

Identify energy storage site based on project objectives. Identify an economic modeling tool to compare the planned traditional utility

with alternatives using distributed resources or demand-side investments. Construct and integrate energy storage system. Test system and analyze results to prove project objectives.

vi. Metrics 1c – Avoided procurement and generation costs. 7b – Increased use of cost-effective digital information and control technology

to improve reliability, security, and efficiency of the electric grid (Pub. Util. Code § 8360).

7d – Deployment and integration of cost-effective distributed resources and generation, including renewable resources (Pub. Util. Code § 8360).

9c – EPIC project results referenced in regulatory proceedings and policy reports (Business Plan references: Deferring a capacity upgrade has been identified as a key potential value of EST and noted in filings with the CPUC/Assembly Bill (AB) 2514.

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viii. EPIC Funds Encumbered $ $2,691,736



xi. Match Funding (if applicable) No


xiii. Funding Mechanism (if applicable) Pay for Performance


xv. Status Update Project completed in February 2018. Final Report included in 2017 EPIC Annual Report.

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Project #1.03 – Demonstrate Priority Scenarios from the Energy Storage Framework



iii. Objective The project aims to reduce existing barriers to deployment of battery energy

storage systems by demonstrating whether post-electric vehicle (EV) “second life” batteries can cost-effectively perform electric distribution services. The project will demonstrate the potential for reduced energy storage system costs via a) the development of an integration platform for deploying such batteries (Phase 1) and b) the use of lower cost “second life” batteries in the integrated platform (Phase 2).

iv. Scope N/A

v. Deliverables N/A

vi. Metrics N/A

vii. Schedule N/A

viii. EPIC Funds Encumbered $0

ix. EPIC Funds Spent $0




xiii. Funding Mechanism (if applicable) N/A


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xv. Status Update Project not executed.

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Project #1.04 – Expand Test Lab and Pilot Facilities for New Energy Storage Systems


ii. Assignment to Value Chain Grid operations/market design

iii. Objective This project would identify ways to enhance the existing test lab facilities at

PG&E’s Applied Technology Services (ATS) center to provide lab test and pilot facilities for new energy storage systems not previously lab tested. PG&E’s ATS lab will be particularly helpful in working with the CEC and industry to test “next generation” technologies that have the potential to make breakthroughs in cost, performance targets, and other important parameters, in a test grid environment. This testing would be a critical step in accelerating commercialization of potential “game changing” technology. New types of technology that may be tested at ATS include, but are not limited to, advanced lithium devices, new sodium-based systems, zinc-air systems and new flow battery chemistries and formats. The funding required to add full capabilities to ATS is minimal. The costs to perform the tests will be paid by the industry or by entities that have received research grants from agencies such as the CEC or Department of Energy (DOE).

iv. Scope N/A

v. Deliverables N/A

vi. Metrics N/A

vii. Schedule N/A

viii. EPIC Funds Encumbered N/A

ix. EPIC Funds Spent N/A



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xv. Status Update Formally Withdrawn. CPUC A.12-11-003, 10/15/2013.

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Project #1.05 – Demonstrate New Resource Forecast Methods to Better Predict Variable Resource Output


ii. Assignment to Value Chain Distribution

iii. Objective Demonstration of emerging capabilities in mesoscale modeling to provide

more granular and accurate weather forecasting input to PG&E’s storm damage prediction model, and to other PG&E forecasting applications, like catastrophic wildfire risk and PV generation. The main goal is more effective and granular damage prediction, and therefore more efficient response to storm events.

iv. Scope Project focus is on development, deployment, and implementation of an

operational version of the Weather Research and Forecasting (WRF) mesoscale model to support PG&E’s forecasting program related to fire, storms and solar production.

Not in scope for this project are enhancements to PG&E’s RWP, other than improved forecast damage numbers.

v. Deliverables Fully functional mesoscale modeling system known as POMMS (PG&E

Operational Mesoscale Modeling System) that will provide the following: Detailed weather input into PG&E’s damage prediction modeling system

(SOPP). Next generation wildfire threat awareness system. Historical and forecast solar irradiance data to internal PG&E

stakeholders. vi. Metrics

3a – Maintain/Reduce operations and maintenance costs. 4a – GHG emissions reductions (MMTCO2e). 5c – Forecast accuracy improvement. 5e – Utility worker safety improvement and hazard exposure reduction.


viii. EPIC Funds Encumbered $535,055

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ix. EPIC Funds Spent $823,890





xiv. Treatment of Intellectual Property (if applicable)

N/A xv. Status Update

Project completed in 2016.

Final Report was included in 2016 EPIC Annual Report.

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Project #1.06 – Demonstrate Communication Systems Allowing the CAISO to Utilize Available Renewable Generation Flexibility



iii. Objective This project would demonstrate the use of accepted communications

protocols to allow the CAISO to send an operating signal to reduce output under specified conditions, as allowed by contracts.

iv. Scope N/A

v. Deliverables N/A

vi. Metrics N/A

vii. Schedule N/A

viii. EPIC Funds Encumbered $0







xv. Status Update

Project not executed.

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Project #1.07 – Demonstrate Systems to Ramp Existing Gas-Fired Generation More Quickly to Adapt to Changes in Variable Energy Resources Output


ii. Assignment to Value Chain Grid operations/market design

iii. Objective There are 33 General Electric (GE) 7FA gas turbines installed in combined

cycle configurations in California, which is considerably more than any other turbine model. GE offers a product marketed as “OpFlex Balance” that uses advanced controls technology to improve ramp rates to as high as 40 megawatts (MW) per minute (or higher in some cases). As of October 2012, none of the 7FAs in California were using this product. This project proposes to demonstrate improved ramp rate capabilities on one 7FA so that it can serve as a model for the rest of the 7FA fleet. It is assumed that there would be cost share with the vendor and the selected plant owner.

iv. Scope N/A

v. Deliverables N/A

vi. Metrics N/A

vii. Schedule N/A

viii. EPIC Funds Encumbered N/A





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xv. Status Update Formally Withdrawn CPUC A.12-11-003, 10/15/2013.

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Project #1.08 – Improve Distribution System Safety and Reliability Through New Data Analytics Techniques


ii. Assignment to Value Chain Transmission; Distribution

iii. Objective Develop and demonstrate a new data analytics technique to improve

distribution system safety and reliability. The project specifically developed and tested a System Tool for Asset Risk (STAR), which is an enterprise software application that Electric Operations will use to calculate and display (graphically and geospatially) risk scores for electric transmission, substation and distribution assets. The STAR will enable an automated, system-wide application to improve risk identification, prioritization, and investment decisions to support electric system safety.

iv. Scope Demonstrate whether the ever-increasing amounts of data can be mined and

combined for targeted, cost-effective use for improved asset management. Potential scenarios include risk-based asset management, safety hazard

mitigation and proactive outage prediction using self-serve and virtual integration environments.

v. Deliverables Overview of existing applications and data sources. Assessment of existing data source quality. High-level future business processes by functional area. Inventory of asset risk algorithms (formulas or complexity) for “In Scope”

asset classes. High-level Change Management Approach. Prioritized and phased implementation plan. Cost estimate for full implementation of the STAR project. Proof of concept prototype.

vi. Metrics 7c – Dynamic optimization of grid operations and resources; including

appropriate consideration for asset management and utilization of related grid operations and resource, with cost-effective full cyber security (Pub. Util. Code § 8360).

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3a – Maintain/Reduce operations and maintenance costs: With the improved understanding of risk, there could be a better tool for evaluating projects such as asset replacement.


viii. EPIC Funds Encumbered $1,249,505







xv. Status Update Project completed in 2015. Final report included in 2015 EPIC Annual Report.

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Project #1.09A – Test New Remote Monitoring and Control Systems for Existing Transmission and Distribution Assets: Close Proximity Switching


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